(Alliance News) - Advanced Medical Solutions Group PLC on Wednesday announced a new acquisition and reported weaker annual profit, despite growth in revenue.

The Cheshire, England-based surgical dressings company said pretax profit fell 18% to GBP21.2 million in 2023 from GBP25.9 million in 2022. But, revenue marginally improved rising 1.5% to GBP126.2 million from GBP124.3 million.

The company said its margins were hurt by a temporary reduction in its US LiquiBand revenue and lower royalty income.

In addition to this, administration expenses rose by 6.9% to GBP50.7 million.

The company proposed a final dividend of 1.66 pence per share, up 9.9% from 1.51p, increasing the total dividend by 10% year-on-year to 2.36p per share from 2.15p.

Looking ahead it remains optimistic.

Chief Executive Officer Chris Meredith said: "The group has never been in such a strong position given the quality of our products and breadth of our portfolio."

On Wednesday, it also announced it has entered an agreement for the proposed acquisition of Peters Surgical, a leading provider of speciality surgical products.

It will fork out up to EUR141.4 million for Peters Surgical, which generated revenue of EUR84.0 million in 2023.

Meredith said: "As well as broadening our portfolio, AMS will benefit from the shared capabilities of the two companies, including direct sales channels, distribution networks, and manufacturing locations."

This transaction is expected to complete at the end of June.

Shares in AMS were up 1.3% to 213.15 pence each in London on Wednesday afternoon.

By Elijah Dale, Alliance News reporter

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